The data is in! See what family owned businesses are saying about today’s challenges and opportunities.
This webcast, titled “Smart Strategies for Family Business Success,” is hosted by Pat Soldano of Policy and Taxation Group and Family Enterprise USA. The session features four experts from Rockefeller Global Family Office, Shirley Quackenbush, Robert Panetti, Ryan Coulson, and Michael Misciagna, who present a holistic approach to managing family wealth, businesses, and relationships.
The presentation is divided into three main sections, each addressing a critical component of family business longevity:
The Alignment of Family Values
Shirley Quackenbush, Managing Director, discusses how the Rockefeller family’s success over seven generations was not solely due to financial planning but also intentional empowerment and shared values. She provides four key recommendations for other family businesses:
Ask Difficult Questions: Foster trust and open dialogue so the next generation feels heard.
Find a Common Family Theme: Transition from a parent’s protective stance to a collaborative role with the next generation.
Provide Consistent Financial Education: Empower every family member with the knowledge to make wise financial decisions, regardless of their direct involvement in the business.
Define a Family Legacy: Find the “glue” that keeps the family unified, which can be principles and ideals rather than a specific cause or large foundation.
The Nuances of Financial Planning
Ryan Coulson, Senior Wealth Strategist, shares a case study of the “Smith family” to illustrate the tension between minimizing estate taxes and maintaining sufficient cash flow for the founders. Using the example of a wealthy family with a $64 million estate, she demonstrates:
The dangers of a “tax-first” approach, where an attorney’s plan to use the full estate exemption would have left the founders “cash poor.”
The effectiveness of a holistic strategy that combines a gift with a sale of the business (using an intentionally defective grantor trust, or IDGT). This approach ensured the founders maintained a steady income stream through a promissory note while still significantly reducing their future estate tax liability from a projected $35 million to just $8 million.
Capital Formation and Business Transitions
Mike Misciagna, Head of Investment Banking Coverage, offers insights into the role of investment banking for family businesses. He explains that his team was created to provide owners with unconflicted advice on their largest asset—the business itself. He contrasts the common assumption that all business owners want to sell with a more nuanced approach, focusing on two specific scenarios:
Bringing in Outside Capital: For a business owner who wants to retain ownership but needs capital for growth or a transition to the next generation.
Seeking a Strategic Partner: For situations where the next generation is not interested in taking over the business, and a strategic partner is needed for its future direction.
About Quackenbush Panetti Wealth Partners
Life’s grandest visions require thoughtful plans. At Quackenbush Panetti Wealth Partners, we’re focused on meeting the dynamic needs of each client, adapting to how those needs unfold over every stage of wealth. Our team is able to provide solutions to your unique challenges, while providing an elevated level of service.
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Since 1995, Policy and Taxation Group has been the leading advocacy group working to reduce and eliminate estate tax, gift tax, and generation skipping transfer tax while blocking increased income tax and capital gains taxes, the creation of a wealth tax, and other hostile tax policies that punish hardworking taxpayers and success.
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